Canadian Family Offices
By Anna Sharratt
September 23rd, 2024
Disputes over trusts are all too common, even in Canada. In Nevada, a battle is brewing that highlights the fallibility of family trusts.
Earlier this week, legal proceedings began in the case of media tycoon Rupert Murdoch, worth an estimated US$20.3 billion, who is seeking to alter an irrevocable family trust in order to maintain control of his media empire, which includes Fox News and News Corp.
He’s chosen Nevada as the site of this drama, a state where it’s possible to legally change irrevocable trusts. Murdoch has to prove that changing the conditions of the trust will benefit all heirs.
Although the court proceedings have not been made public, the high-profile case illustrates that trusts can be challenged.
There’s no such thing as an airtight trust… disputes concerning trusts are common and frequently centre around whether a trustee is following the terms of the trust or isn’t using proper discretion as to how assets in the trust are being distributed.
Matthew Rendely, Partner, Loopstra Nixon LLP
